Condor Gold Regulatory News (CNR)

18 Dec 2007 15:30

Condor Resources PLC18 December 2007 18th December, 2007 Condor Resources plc ("Condor'' or ''the Company") High Grade Results from Maiden Drilling at the Segovia Project, Nicaragua Highlights Condor Resources Plc (AIM: CNR) is pleased to announce completion of the firstphase of drilling at two prospects on the San Albino Licence, within the SegoviaProject area in Nicaragua. Results to date include: One metre final sample results: • SARC005 4 metres at 17.9g/t gold from 8 metres 4 metre composite results: • SARC013 8 metres at 8.26g/t gold from surface, and • SARC013 4 metres at 4.37g/t gold from 12 metres Individual one metre split assays for Hole SARC013 have been sent to thelaboratory and results are awaited. CEO, Nigel Ferguson, stated "The results from the initial drilling on the ArrasProspect have confirmed that high grade gold mineralisation encountered atsurface continues at depth with good grade and width. The indication of a secondparallel zone of gold mineralisation in the latest composite sample assayresults is an encouraging bonus. The Company will follow the mineralizationdown dip through a second phase of drilling expected to start in February 2008.We are confident that further significant mineralisation will be encountered anda resource proved up at the Arras Prospect." Segovia Project A total of fifteen reverse circulation and combination reversecirculation-diamond core drill holes were drilled for 1,683 metres of reversecirculation and 64.7 metres of diamond core. Twelve of the drill holes testedthe Arras Prospect for the continuation at depth of high grade surface goldmineralisation defined by recent trench sampling (RNS 3rd September 2007). Theremaining three scout drill holes comprising a total of 283 metres reversecirculation drilling, targeted the mineralised structure of the historical SanAlbino Mine. At both prospects the drilling was at between 40 metre and 80 metrespacing, testing a combined strike extent of over 400 metres. Four metre composite assay results have been received for all drill holes.Initial positive composite sample results warranted 1 metre riffle splitsampling of the anomalous intervals and to date the results of the first sixdrill holes have been received. A summary of greater than 1 gram per tonne goldintercepts include: • SARC005 4 metres at 17.9g/t gold from 8 metres • SARD001 1 metre at 2.87g/t gold from 31 metres • SARD001 0.37 metre at 1.09g/t gold from 170 metres Best composite results: • SARD010 4 metre at 1.15g/t gold from 12 metres • SARD010 4 metre at 1.19g/t gold from 92 metres • SARC013 8 metres at 8.26g/t gold from surface, and • SARC013 4 metres at 4.37g/t gold from 12 metres • SARC014 4 metres at 1.87g/t gold from surface • SARC015 4 metres at 1.27g/t gold from 36 metres Arras Prospect The Arras Prospect is located some 600 metres south of the historical San AlbinoMine. Trench sampling has defined a high-grade gold mineralised structure, over200 metres long with gold intercepts including 24 metres at 7.17 grams per tonnegold at the surface. The high-grade gold intercept of 4 metres at 17.9 gramsper tonne gold from 8 metre drill depth in discovery drill hole SARC005 comparefavourably with similar grade composite samples from drill hole SARC013 andpositive intercepts in drill holes SARC014 and SARC015 indicating that goldmineralisation dips at approximately 35 degrees to the northwest. Two mineralised intervals were intercepted in drill hole SARC013. It is likelythat old mine workings intercepted in SARC014 at 7 metre and in SARC015 at 31metre represent the second mined-out mineralised interval in both these drillholes. Field observations and local reports suggest that mining at Arras wasonly at the developmental stage when mining activities were halted by civilunrest in the 1930's so it is thought that only a small portion of the goldmineralised material was removed. The new drilling results now define a tabular shallow dipping mineralised bodywith a surface strike length of between 210 and 290 metres and up to twoparallel lodes, one of which is 4 metres thick. A minimum down dip extent of upto 100 metres has now been defined by drilling and remains open down-dip.Further drilling is planned in 2008 to test for gold mineralisation below 100metres vertical depth. Gold mineralization occurs in sulphide-bearing quartzveins and veinlets hosted by a thick package of quartz-mica-graphite schist. San Albino Prospect A further three reverse circulation scout drill holes, for a total of 283metres, were drilled into the mineralised structure of the historical San AlbinoMine. Drilling targeted zones beneath the 300 foot and 400 foot mine levels, asdefined by old mine plans and some outcrop data. As at the Arras Prospect, thetwo holes drilled towards the northwest failed to intercept gold mineralisation,whereas drill hole SARC010, which was drilled in the opposite direction (towardsthe southeast) intercepted two gold mineralised zones. Composite assay resultsreturned two anomalous intervals in drill hole SARC010 returning 4 metres at1.15 grams per tonne gold from 12 metres and 4 metre at 1.19 grams per tonnegold from 92 metres. These results suggest that mineralisation is dipping in a northerly direction.Historical records indicate that higher grade material (greater than 1 ounce or31 grams per tonne gold) was extracted from the San Albino mine before civilunrest halted production in the 1930's, and rock chip samples of mine spoilcollected from the entrance to some of the mine adits returned assay results upto 72 grams per tonne gold. Further drilling is planned to test for a highergrade zone along strike or down dip. Condor remains optimistic about the potential for the discovery of economic goldmineralisation on the San Albino-Murra and contiguous Potrerillos concessions,and at the Arras Prospect in particular. An initial resource calculation willbe undertaken early in 2008. Condor has scheduled further drilling of theprojects to commence in late January 2008. Qualified Person's Declaration The information in this announcement that relates to Exploration Results isbased on information compiled by and reviewed by Nigel Ferguson, CEO, who is aMember of the Australian Institute of Mining and Metallurgy and a geologist withover 21 years of experience in the exploration and definition of precious andbase metal Mineral Resources and has sufficient experience that is relevant tothe style of mineralization and type of deposit under consideration and to thetype of activity which he is undertaking to qualify as a Qualified Person asdefined in the March 2006 Edition of the AIM Guidance Note for Mining, Oil andGas Companies. He consents to the inclusion in the report of the matters basedon his information in the form and context in which they appear and confirmsthat this information is accurate and not false or misleading. - Ends - Enquiries: Condor Resources Plc Mark Child, Chairman +44 20 7408 1067 Nigel Ferguson, CEO +44 20 7808 7222 Nabarro Wells & Co. Limited Hugh Oram +44 20 7710 7400 Anthony Rowland +44 20 7710 7419 Mirabaud Securities Limited Rory Scott +44 20 7878 3360 Parkgreen Communications Limited Simon Robinson +44 20 7851 9085 Chain of Custody Condor enforces a strict chain of custody, with all field samples beingcollected under the supervision of a qualified senior geologist. Samples aresealed in larger bags and kept under lock and key until being delivered toeither: 1. BSI Inspectorate Laboratories, Guatemala for completion of the sample preparation phase. Prepared samples are then forwarded by courier to BSI Laboratories in Sparks, Nevada, USA for final assay determinations, or 2. CAS de Hondurus Laboratory for completion of sample preparation and final assay determination. About Condor Resources Plc: Condor Resources Plc was admitted to AIM on 31st May 2006 raising £4.9m. Condoris a mineral exploration company focused on El Salvador and Nicaragua. TheCompany has 100% ownership of four licenses and is earning 100% interest in afifth licence contained in three project areas in El Salvador. Condor also hasfour 100% owned licences and the option to earn an 80% interest in a furtherfour licences contained within four project areas in Nicaragua. An independent competent person's report prepared by Ravensgate and included inthe Company's Admission Document combined with a subsequent mineral resourcecalculation statement in December 2006 reported Inferred Mineral Resources, asdefined by the JORC standard of some 467,104oz gold and 18.4Moz silver withintwo project areas in El Salvador. The Company's objective is to prove up significant gold and silver resources ofbetween 1 to 2 million ounces of gold and 30 to 50 million ounces of silver toJORC reportable standards by the 31st May 2008. The Company intends to continueto drill test targets within its Project areas. The drilling programme isplanned to be between 20,000m and 40,000m of combined reverse circulation anddiamond drilling. This information is provided by RNS The company news service from the London Stock Exchange